Abstract: A method of conducting anonymous transactions over the Internet protects consumers from identity fraud. The process involves the formation of a Secure Anonymous Transaction Engine to enable any consumer operating over an open network, such as the Internet to browse, collect information, research, shop, and purchase anonymously. The Secure Anonymous Transaction Engine components provide a highly secure connection between the consumer and the provider of goods or services over the Internet by emulating an in store anonymous cash transaction although conducted over the Internet. The Secure Anonymous Transaction Engine is accessible to all merchants conducting business over the Internet and does not require subscription to any special service.